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adidas Expects Sourcing Shift from China to Vietnam Due to U.S. Trade War

adidas is expecting a sourcing shift from China to Vietnam in an effort to shrug off the ongoing trade war between the U.S. and China and the potential imposition of U.S. tariffs on Chinese-made shoes.

According to adidas CEO Kasper Rorsted, Vietnam saw an a uptick in production of adidas footwear volume — 44% in 2017, up from 31% back in 2012 — while China has seen a decrease in production from 30% to 19% in the span of five years.

Rorsted projected the trend to continue in the years to come despite acknowledging in the massive procurement market in China. According to Reuters, he also noted the potential imposition of U.S. tariffs in the shoe market but shrugged it off by arguing that competitors will also be effected by import duties.

“I’m not going to rule out that this trend is going to continue,” he told Reuters. “China is still an important procurement market, irrespective of trade duties.”

According to Reuters, Puma, one of adidas’ many competitors, makes a third of its products in China. However, the company will also be decreasing its production in China, a contingency plan that aims to tone down its commitment to China if import duties are indeed imposed.